Business reports for effective business management
History books are pieces of information on humanity’s decisions, actions, achievements, and failures. That is the reason people should study history, not to iterate mistakes of the past, and gain wisdom. The above example can be applied perfectly to the world of business. Companies and freelancers should always analyze their employees’ productivity, sales, expenses, and working time. Fortunately, there are platforms that construct the most valuable asset that businesses constantly use namely reports. Businesspeople need to have access to reporting related to their business data. By examining business reports, they will be able to get valuable knowledge, make educated decisions that can bring about development and financial success.
All of the types of business reports to be discussed in this blogpost have a direct or indirect relation to a company’s financial data. In the end, every business move will ultimately have an impact on revenue and business viability. The following reports should be monitored weekly, every time a big project is complete and when new processes are implemented.
Time Tracking Reports
This type of business reports is central to solopreneurs and teams for different reasons. Freelancers act both as managers and employees, so they need to have full control of their time. At the same time, team managers have the responsibility of running projects and monitoring employees to secure the smooth functioning of business operations.
As you already know, reports on business matters do not fall from the sky. You need to be using a time-tracking software that generates business reports on various topics. Based on those reports, you will be able to observe your team’s productivity levels through the time they allocate on different projects and tasks. Knowing what you and your teammates work on will offer insightful data on how to compare the project results to the tracked time dedicated to it. This way, you will be able to find where you lost time and misplaced too much effort. Above all, you will be taking the right steps towards increasing your productivity.
Without successful sales, there is no business longevity. Therefore, you need to be putting your focus on your sales reports. They can show you if you have reached the targeted goals you have set monthly, quarterly, and yearly. Hence, you should be monitoring them frequently. Think of your sales reports as a library full of invoices related to specific products, services, and clients. A beneficial move to any company is to cross-check your sales report with the expense reports to get a comprehensive picture of your finances.
For example, if a company does not see the expected results in terms of growth, then the sales reports are the first you should turn to. There, you can find out how the current month compares to the previous ones. Next, you will be able to make changes to see if your sales will be increasing in the upcoming months.
The same way you feel the need to know how much revenue you get; you should also keep in mind another type of reports with the same thoroughness. Month in month out, keeping all your business expenses under control will give you a better understanding of which expenses worth your attention. You will even get the chance to cut down on costs that are not necessary. In short, your expenses should be in check so that you do not exceed your budget limits.
Reports on business sales and expenses should always be monitored in parallel. If you spend more money than you make, then a revamped management plan should be prioritized.
Not all businesses work with multiple projects or have the same business cycles. However, if you undertake projects, then you need to study the respective reports. This type of report presents a project’s status regarding financial, team, time matters. An organized dashboard can give you information about unpaid/paid invoices, billable/unbillable time, and the employees assigned to that project. Let us not forget that project reports around project labor costs can also be estimated and thus improve the budget planning process and overall project management.
Useful and user-friendly project reports are available through invoicing and time-tracking software. Time-tracking the work done, registering all the invoices, and listing relevant expenses will create a complete view of all your projects. Reports can also come in the comprehensive form of widgets, graphs, and metrics around all the valuable key areas of a project. Then, you will be able to adequately address any arising problems before the completion of a project.
Payment Received Reports
The final spot on this least belongs to a financial-related report. The payment received reports keep you updated on your business cash inflow. This type of reports should be giving you specific metrics on the money you receive from the invoices you issue for your clients as well as the balance of supplier credits and other kinds of transactions. At the same time, bar and pie charts can give you extra data on the type of payment (cash, cards, payment gateways) and the contacts with the highest amount of payments.
To sum up…
Modern professionals are in great need of reports since they help them navigate their way in the vast sea of business. They can keep track of time, productivity, and revenue in order to stay in the game and claim a place in the business sun. The right invoicing and time tracking software will function as your business advisor offering a variety of insightful reports, including the ones analyzed in this blog post.